NEWS

Timing dictates new schools

City won’t issue bonds for a year; design-build method weighed

By JOHN HOWELL
Posted 10/12/23

Building two new high schools isn’t as easy as pressing a button now that the City Council has approved the issuance of $350 million in bonding approved by the voters last November.

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NEWS

Timing dictates new schools

City won’t issue bonds for a year; design-build method weighed

Posted

Building two new high schools isn’t as easy as pressing a button now that the City Council has approved the issuance of $350 million in bonding approved by the voters last November.

It’s going to take time to design and then solicit bids for the two schools. And issuing bonds isn’t as easy as withdrawing from an ATM.

Time is not on the school department’s side, either.

In order for the department to reap the full 55 percent in state reimbursement, it will need to award a construction contract by the end of next June, Steve Gothberg , director of capital projects and construction, explained on Friday. If the city misses that deadline which is set by state legislation, he said the city would lose its bonus reimbursements knocking reimbursements back to 35 percent.

To get to the point of awarding a contract, or separate contracts for each of the schools as may happen, the department needs $20 million to complete school designs and have specifications ready to bid in April 2024 if not earlier.

At a meeting last week, City Finance Director Peder Schaefer arrived at a plan to use city reserves for the time being to pay for designs and to apply for “pay-as-you-go” reimbursement from the state that would be paid at the 35 percent rate.

“We would be advancing from the general fund,” Schaefer said. The plan would have the city enter the bond market about this time next year. Also, citing how interest rates have increased and how the city completed the sale of $20 million in bonds on Sept. 14, Schaefer said he is considering the issuance of bonds in two or more trounces.

One aspect of financing the new schools seems certain at this time.

“We’re not going to think about it (issuing bonds) for a year,” he said.

Gothberg questions how the department can meet the plan to use the design, bid and build method of construction with the deadline to have a contractor aboard by next June. He sees design, bid and build as the preferred method to building the schools as it would give the department greater control over the final product. The option is a design-build contract that would enable the department to have a contractor in place sooner but would give the contractor design aspects of the project.

Gothberg talks about a “bridging document” should the design-build method be selected that would give the department the flexibility to use its architects, Saccoccio & Associates and SAAM, to ensure the city gets what it wants and “makes sure the building fits the budget.”

As described on the ASD (Automated Systems Design, Inc.) website with design-build, a single entity manages design-build projects. During this process, the builder and designer work hand-in-hand to provide design, engineering, and implementation services. The early and frequent collaboration between architects, engineers, estimators, trades, and construction disciplines defines this method.

With design-bid-build the most traditional project delivery method appeals to those looking for low-cost bids. In this method, the owner contracts designers and builders separately. The design firm delivers 100% complete design documents. Then the owner solicits bids from contractors to perform the documented scope of work.

The ASD website offers comparisons of the two systems and data showing design-build projects are more frequently completed on time and under budget.

Citing the June deadline, “I think it has to be design-build,” School Committee Chair David Testa, School said Monday. He said the next step is for the department to seek bids using the design-build method for each of the schools and for the award of contracts by the deadline.

He didn’t think an extension of the deadline possible as that would require legislative action that wouldn’t occur until after the session convenes next year.

“We have to proceed as if June is the deadline,” he said. He suggested a construction manager as another method of construction, but added according to what he’s been told that could add 15 to 20percent to the cost of the project.

“There are a lot of eyes on the project,” he said. “It’s in everyone’s interest that we succeed here. I’m confident we can do this.”

timing, schools, bonds

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